GMB, a trade union for staff in the AA, has called on The Pensions Regulator to investigate the company’s ballooning £622m pension deficit.

The union has said they are alarmed by the AA’s DB pension scheme deficit which reached £622m at the end of July 2016 from £296m at the end of January this year. It has said that TPR must examine the activity of the AA’s previous owners which had an impact on its current deficit.

GMB has issued warnings for years of the draining of funds out of the AA since it was purchased by private equity owners in 2004 when CVC and Permira acquired it from Centrica in a £1.75bn deal.

In addition, the AA and Saga merger in 2008 saw Saga chief executive Andrew Goodsell receive £104m and AA CEO Tim Parker received around £40m.

Private equity bosses also shared a £1.7bn payment following the merger with CVC Capital Partners, Permira Advisers and Charterhouse General Partners sharing the payout.

GMB emphasised that the role of those that drained money out of the AA, including Tim Parker, Damon Buffini and Charterhouse must be scrutinised in detail.

GMB regional organiser Paul Grafton said, "This ballooning pension deficit needs to be examined and the role of those that sucked money out of the AA, people like Tim Parker and Damon Buffini and companies like Charterhouse, must be scrutinised in detail. The Pensions Regulator must examine the role played by previous owners and get them to put some of the billions they made back into the AA workers pension pot.

“GMB will be looking into the role of the pension scheme trustees and whether they have been properly proactive in protecting the fund while money has flowed out of the organisation to the private equity owners and in interest payments to cover the debt mountain they landed on the organisation."

At the end of last month, the motoring group also said it was considering a bulk annuity deal with an insurer as it looked to tackle its ballooning deficit.

A spokesperson for The Pensions Regulator said: “We do not comment on individual cases or companies unless it becomes appropriate to do so.”

A spokesperson for the AA said: "The GMB are not our recognised union. Discussions between the AA Pension Trustees and the AA are ongoing regarding our pension scheme."

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